America's Big Three car companies employ a quarter of a million people directly, but it's believed that one in ten jobs in the US are tied to the industry. Parked at the "Last Chance Saloon" the country's motor manufacturers have been given a 17.4-billion-dollar bailout by George Bush to save them from the scrap heap.
"My economic advisers believe in such a collapse would deal an unacceptably painful blow to hardworking Americans, far beyond the auto industry. It would worsen our weak job market and exacerbate the financial crisis. It can send our suffering economy into a deeper and longer recession.
But the bailout comes with conditions. The car companies must show they can repay the loans by the end of March next year, proving they're economically viable. They’ll have to accept limits on salaries and bonuses, and have been told the perks such as corporate jets must be eliminated. And the US government will have the right to go through their books at any time, challenging their business independence.
Shortly after announcing the bailout, Mr. Bush was on TV once more--This time to accept the traditional portrait given to presidents about to leave office.
"I just expected there would be a good sign as cry on, once the world got out about my hanging.”
He had made it clear he wouldn’t be the one to hang the car industry out to dry, because it would be too late by the time Barack Obama takes over. Mr .Obama described the package as a necessary step. “The auto companies must not squander this chance to reform bad management practices and begin a long-term restructuring that is absolutely necessary to save this critical industry and millions of American jobs that depend on it, while also creating the fuel efficient cars of tomorrow.”
Ford has said it hopes to get by without government help, but controversially, the government is using part of the pot of 700 billion dollars which was supposed to prop up Wall Street instead.
Mica Holland sky news.
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